March 8 (Bloomberg) -- Mando Corp., the largest unit of
South Korea’s Halla Group, is planning an initial share sale of
its Chinese unit that may raise as much as 300 billion won ($275
million), two people familiar with the matter said.

The company plans a Hong Kong listing of the unit after
selling a 30 percent stake during the second quarter, valuing
Mando China Holdings at about 1 trillion won, said the people,
who asked not to be identified because the plans haven’t been
made public. Morgan Stanley and Deutsche Bank AG are handling
the deal, which will involve the sale of existing and new stock,
the people said.

The proceeds may help the Korean auto-parts maker fund
acquisitions as Mando Chairman Chung Mong Won seeks to rebuild
his business empire. Halla Group went bankrupt in 1997 after
years of over expansion saddled it with at least 6.5 trillion
won in debt.

Among companies Chung may be pursuing is former affiliate
Halla Climate Control Corp., which is now controlled by Van
Buren Township, Michigan-based Visteon Corp. Mando said in
August it may offer to buy Visteon’s 70 percent stake in Halla
Climate.

Mando had previously sought to list the Chinese unit in
November, two people familiar with the matter said in September.
The company said in February it revived those plans. Mando
reiterated today that it’s planning a Hong Kong listing of the
China unit. It declined to comment on the amount or the timing.